Cloud in Europe: Between US dominance and the fight for data sovereignty

European business, driven by innovation and scalability, relies heavily on the cloud services of American hyperscalers. However, this deep technological dependence raises fundamental questions about the future of the continent's digital sovereignty and companies' real control over their most valuable resource—data.

6 Min Read
cloud, edge computing, shadow IT
Source: Freepik

The European technology business is at the heart of a strategic paradox. On the one hand, thousands of companies – from startups to corporations – are basing their critical operations on cloud infrastructure provided by US hyperscalers such as Amazon Web Services, Microsoft Azure and Google Cloud.

This has provided them with unprecedented speed, scalability and access to innovation. On the other hand, this dependency raises fundamental questions about data control, legal accountability and the future of the continent’s digital autonomy.

The imperative of sovereignty in the age of data

As early as 2020, the European Parliament signalled a growing imbalance of power in the global digital ecosystem. The concern was the gradual loss of control over data by European companies and institutions, which could consequently limit the European Union’s ability to legislate and enforce its own rights in the digital domain.

Today, in the era of the dynamic development of the cloud and the globalisation of data flows, this issue takes on a new dimension. The question of the jurisdiction under which data is processed is no longer just a matter of regulatory compliance. It is becoming a strategic element of business resilience and autonomy.

When corporate cloud environments cross national borders, geopolitical risks arise.

Regulations in other countries, such as those relating to national security, may allow access to data in a manner contrary to EU privacy standards, such as the DPA.

The situation is further complicated by the nature of modern data. It is estimated that 80-90% of all newly generated information is unstructured data – text files, video, audio or IoT sensor data.

Traditional databases are not equipped to manage such information chaos. Many organisations struggle with a lack of transparency in their hybrid and multi-cloud environments, not knowing exactly where their data resides, who is responsible for it and how it is used.

Such a situation drastically increases risk and makes it difficult to maintain real sovereignty over a key company resource such as data.

European response and the giants’ move

In response to these challenges, initiatives such as GAIA-X and Eurostack have emerged on the Old Continent. Their aim is to lay the foundations for a sovereign European cloud that provides greater control over data without compromising on performance and security.

However, their large-scale deployment faces barriers ranging from high market fragmentation, high costs and a lack of fully competitive solutions compared to hyperscalers’ offerings.

Meanwhile, the US giants are not remaining passive. Amazon’s announcement of a multi-billion dollar investment in the AWS European Sovereign Cloud is a clear sign that the topic of data sovereignty has entered the global strategic agenda for good.

However, the question remains open: are such initiatives a viable alternative and a step towards greater customer autonomy, or are they merely a way of reinforcing existing dependencies under the banner of compliance with local expectations?

The pragmatic path to sovereignty: Smart governance

However, companies do not have to wait for systemic resolution. They can already regain much of the control over their data with modern, vendor-independent data management platforms. The key is to create a layer of abstraction that provides full visibility across distributed and fragmented storage environments.

This approach gives organisations a unified view of where their data is, how information flows and who has access to it – regardless of the cloud or on-premise infrastructure chosen.

In heterogeneous IT landscapes, where overlapping jurisdictions and policies are the norm, a centralised metadata-based management system becomes an essential tool to reign in the chaos.

Modern solutions make it possible to categorise and classify data based on its sensitivity or regulatory risk, and then automatically apply appropriate management policies, regardless of physical location.

This not only facilitates compliance requirements, but also strengthens digital resilience and builds customer trust.

A key element of this strategy is to avoid vendor lock-in (dependence on a single provider), including in the realm of data management. Systems confined to a single cloud ecosystem make it difficult to consistently manage the entire data lifecycle.

Modern, interoperable platforms ensure that data is stored in accordance with the law and company policies, while guaranteeing freedom of access and migration in the future.

Ultimately, Europe’s digital future will depend not only on where data is stored, but more importantly on how effectively companies can manage, secure and control it.

The development of intelligent data management tools is becoming a prerequisite for European companies to remain strong and autonomous in the global digital economy.

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